I’m another Investor like Kunal from India. I’m also keen to understand the calculation for Free Cash Flow.

They do have Cash Flow statement. However would be great if you can confirm the calculation for me.

Here’s the site I’m using with an example company called Fag Bearings

From my understanding to get FCF one would do the following from that page:

CASH FROM OPERATIONS – Capital Expenditure

Both of the above are given on adjacent lines one below the other.

Do let me know if my understanding is correct. Thanks for your help.

Free Cash Flow is the excess cash that can be generated from a business’ operations. A business collects money from sales, pays its bills, and buys or repairs equipment. The cash that is left over from that process is “Free Cash Flow” – the money that can be used to fuel growth or pay to shareholders.

Free Cash Flow is not exactly the “Cash From Operational Activities” because that does not take into account the “buy and repair equipment” portion of the business’ operations (the “capital expenditures”).

I’m not sure what the financial statements look like in India, but U.S. companies provide us with a Statement of Cash Flows. With a little reorganization, we can find the free cash flow of a business in a matter of seconds.

You can see the calculation in my comment here.

I would like to what free cash flow means?

Does it mean cash from operational activities.

I am an Indian Investor.